S.Korean shares end higher despite virus worries, grim U.S. data

* KOSPI edges up, foreigners net buyers

* Korean won inches down against U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

SEOUL, Aug 26 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares shrugged off worries about rising domestic infections and grim U.S. data to close slightly higher on Wednesday after its government said it hadn’t decided yet whether or when to raise the social distancing rule to level 3.

** The benchmark KOSPI closed up 2.59 points, or 0.11%, to 2,369.32, after dropping as much as 1.26%.

** The country reported 320 new infections as of midnight Tuesday and ordered most schools in Seoul and surrounding areas to close and move classes back online.

** The Bank of Korea will likely hold policy interest rate unchanged on Thursday, but is expected to downgrade its economic projection by a large margin from the current 0.2% decline.

** Meanwhile, U.S. consumer confidence dropped to a more than six-year low in August as households worried about the labour market and incomes.

** Volatility in KOSPI is rising as investor sentiment seems to be highly affected by the development of the novel coronavirus situation in the country, said Lee Young-gon, analyst at Hana Financial Investment.

** Foreigners were net buyers of 189.6 billion won ($159.77 million) worth of shares on the main board.

** The won ended trading at 1,186.8 per dollar on the onshore settlement platform, 0.14% lower than its previous close of 1,185.1.

** In offshore trading, the won was quoted at 1,186.8 per dollar, down 0.1% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,186.17.

** In money and debt markets, September futures on three-year treasury bonds was down 0.03 point at 112.14.

** The most liquid 3-year Korean treasury bond yield rose by 0.8 basis point to 0.833%, while the benchmark 10-year yield rose by 1.7 basis points to 1.404%.

$1 = 1,186.7200 won Reporting by Joori Roh; editing by Uttaresh.V